The Danish Energy Agency has published a new offshore report presenting the Danish regulatory framework for offshore wind and the remarkable results achieved.
Denmark commissioned its first offshore wind farm more than 25 years ago. Since then Danish offshore wind farms have become much larger and a lot cheaper. At the same time the large wind farms have been moved further offshore as to reduce the visual effects of the wind turbines.
In late 2016, an auction set the feed-in tariff for Kriegers Flak, Denmark’s latest offshore wind farm, located in the Baltic Sea. The winning bid for the 600 MW installation was as low as 0.372 DKK/kWh (5.0 cEUR/kWh) for the first 30 TWh generated. The price excludes cost of grid connection to shore, which under Danish rules is socialised among all electricity consumers. Even if grid connection cost is added (0.05-0.10 DKK/kWh, depending on depreciation period), the price is still believed to set a new global record in price of offshore wind.
In this new report, the regulatory framework for offshore wind in Denmark is presented and lessons learned underway are highlighted.
Substantial progress in making offshore wind competitive on market terms is being made these years. We hope you will find inspiration in the Danish way of thinking.